[Federal Register Volume 88, Number 233 (Wednesday, December 6, 2023)]
[Proposed Rules]
[Page 84770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26785]



[[Page 84770]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-132422-17]
RIN 1545-BO07


Income and Currency Gain or Loss With Respect to a Qualified 
Business Unit; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking; correction.

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SUMMARY: This document contains a correction to a notice of proposed 
rulemaking that was published in the Federal Register on Tuesday, 
November 14, 2023. The proposed regulations provide guidance relating 
to the determination of taxable income or loss and foreign currency 
gain or loss with respect to a qualified business unit.

DATES: Written or electronic comments and requests for a public hearing 
are still being accepted and must be received by February 12, 2024.

ADDRESSES: Commenters are strongly encouraged to submit public comments 
electronically via the Federal eRulemaking Portal at https://www.regulations.gov (indicate IRS and REG-132422-17) by following the 
online instructions for submitting comments. Requests for a public 
hearing must be submitted as prescribed in the ``Comments and Requests 
for a Public Hearing'' section. Once submitted to the Federal 
eRulemaking Portal, comments cannot be edited or withdrawn. The 
Department of the Treasury and the IRS will publish for public 
availability any comments submitted to the IRS's public docket. Send 
paper submissions to: CC:PA:01:PR (REG-132422-17), Room 5203, Internal 
Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 
20044.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Raphael J. Cohen at (202) 317-6938; concerning submissions of comments, 
requests for a public hearing, and access to a public hearing, Vivian 
Hayes at (202) 317-6901 (not toll-free numbers) or by email to 
<a href="/cdn-cgi/l/email-protection#512124333d383239343023383f3622113823227f363e27"><span class="__cf_email__" data-cfemail="8cfcf9eee0e5efe4e9edfee5e2ebffcce5feffa2ebe3fa">[email protected]</span></a> (preferred).

SUPPLEMENTARY INFORMATION:

Background

    On November 14, 2023, the Federal Register published a notice of 
proposed rulemaking and partial withdrawal of notice of proposed 
rulemaking (REG-132422-17) at 88 FR 78134 (the proposed regulations). 
The proposed regulations that are the subject of this correction are 
issued under sections 861, 985 through 989, and 1502 of the Internal 
Revenue Code.

Need for Correction

    As published, the preamble to the proposed regulations contains 
errors that may prove to be misleading. This document provides a 
technical correction to the preamble, which clarifies the misleading 
paragraph.

Correction of Publication

    Accordingly, the publication of the proposed regulations (REG-
132422-17), which was the subject of FR Doc. 2023-24649, published on 
November 14, 2023, is corrected on page 78156, in the third column, by 
revising the first full paragraph to read, ``Taxpayers may rely on the 
proposed regulations (and so much of the final regulations as would not 
be modified by the proposed regulations) for taxable years ending after 
November 9, 2023, provided the taxpayer and each member of its 
consolidated group and section 987 electing group consistently follow 
the proposed regulations in their entirety and in a consistent manner. 
Additionally, for taxable years ending after November 9, 2023, and 
beginning on or before December 31, 2024, taxpayers may rely on only 
the applicability date provisions in proposed Sec. Sec.  1.861-
9(g)(2)(v), 1.985-5(g), 1.987-14(a), (c), and (d), 1.988-1(i), 1.988-
4(b)(2)(ii), and 1.989(a)-1(b)(4) and (d)(4), provided that: (1) the 
taxpayer and each member of its consolidated group and section 987 
electing group consistently follow those provisions in their entirety 
and in a consistent manner for those taxable years; (2) with respect to 
any terminating QBU to which proposed Sec.  1.987-14(a)(2) would apply 
or partnership to which proposed Sec.  1.987-14(a)(3) would apply, the 
taxpayer and each member of its consolidated group and section 987 
electing group consistently follow all of the proposed regulations (and 
so much of the final regulations as would not be modified by the 
proposed regulations) in their entirety and in a consistent manner; and 
(3) to the extent that, under proposed Sec.  1.987-14(c), proposed 
Sec.  1.987-10 would be applied in lieu of prior Sec.  1.987-10, the 
taxpayer and each member of its consolidated group and section 987 
electing group consistently follow proposed Sec.  1.987-10 in its 
entirety and in a consistent manner. Thus, for example, a calendar year 
taxpayer that has consistently followed the method described in the 
1991 proposed regulations could continue to follow that method for the 
2024 taxable year in reliance on proposed Sec.  1.987-14(a)(1) (and 
would not need to follow the other parts of the proposed regulations, 
except to the extent provided in the prior sentence).''

Oluwafunmilayo A. Taylor,
Section Chief, Publications and Regulations Section, Associate Chief 
Counsel (Procedure and Administration).
[FR Doc. 2023-26785 Filed 12-5-23; 8:45 am]
BILLING CODE 4830-01-P


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